Conventional Oil & Gas

Safe, Reliable Offshore Operations

We have major positions in three of the world’s most significant conventional basins – the UK North Sea, offshore West Africa and the deepwater Gulf of Mexico. From Europe to Africa to North America, our conventional business forms the heart of our current production and cash flow as well as some of our best prospects going forward.

UK North Sea
Nexen is the second largest oil producer in the UK North Sea, thanks to the resource-rich Buzzard facility, which in 2011 generated about 62,000 boe/d net to Nexen. We’ve doubled our proved reserves in the North Sea since 2004 and continue to actively explore in the region. The Golden Eagle development is our next major UK project, and one of the biggest discoveries in the region in the past decade. First oil production is expected in late 2014 and the development is expected to have initial gross production of 26,000 boe/d net to Nexen. We’re also pursuing a number of tieback opportunities to existing facilities to deliver near-term growth.

West Africa
Offshore West Africa is another core area that’s expected to contribute high-margin production. At full capacity, the Usan Floating Production, Storage and Offloading (FPSO) unit has the capacity to handle 180,000 barrels of oil per day (bbls/d). Of that capacity, 36,000 bbls/d is net to Nexen. We also have a strong inventory of follow-up prospects and expect offshore West Africa to be part of our growth plans for many years.

Gulf of Mexico
Nexen is one of the largest leaseholders in the Gulf of Mexico, with more than 100 prospects. Our 2010 joint venture discovery at Appomattox is one of our best yet. Located about 72 miles off the Louisiana coast, Appomattox is estimated to contain (net to Nexen) 65 mmboe of probable reserves of light oil and approximately 50 mmboe (ranging from 25 to 90 mmboe) of contingent recoverable resources of light oil.